portfoio margin for an IRA account with IB

Discussion in 'Interactive Brokers' started by njrookie, Jan 30, 2011.

  1. The main reason you can't get an IRA margin account with IB or anyone else is that the IRS says so.

    According to IRS regulations, if any part of an IRA is used as collateral, then the IRA is considered to be distributed. In a margin account, the entire account is collateral.

    Objections should be sent to Internal Revenue Service. Expect prompt change of regulations to meet your requirements.
     
    #11     Feb 1, 2011
  2. i think you could get around margin restrictions by opening a self directed ira, so it would be more of a trust structure, and you then could get around margin restrictions and even be able to buy real estate. It's just that you will need a good amount of money.
     
    #12     Feb 2, 2011
  3. I can trade futures in my IB IRA but cannot short a stock even if I get call protection. This doesn't quite make sense to me. Can anyone explain?
     
    #13     Feb 3, 2011
  4. Don't try to look for sense in all this.
     
    #14     Feb 3, 2011
  5. jnbadger

    jnbadger

    Ditto. The people who write these regs are the same people who think a covered call is perfectly safe, and a naked put is extremely risky.
     
    #15     Feb 3, 2011
  6. Someone please show me a margined IRA account, let alone a PM IRA account. What a waste of bandwidth.
     
    #16     Feb 3, 2011
  7. #17     Feb 3, 2011
  8. Simply hit the brokers' lower threshhold and you will get your answer very quickly...

    The broker will cover your position at net balance $2000 or less....

    The trader does not lose everything, but the broker is protected.

    End of story...as for the OP...name says it all:p

    NiN
     
    #18     Feb 3, 2011
  9. MR.NBBO

    MR.NBBO

    #19     Feb 3, 2011
  10. There is technically (and in fact) no margin loan with futures so you do not run afoul of IRS regulations about borrowing against assets.
     
    #20     Feb 8, 2011